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5 Golden Rules for running a successful Enterprise and Supplier Development Program

By September 19, 2016September 26th, 2019No Comments

smartgrowthThe month of September has seen NPI Governance Consulting making inroads through partnering with the IQ Business’ annual Executive Forum Smart Growth ( hosted in Cape Town and Johannesburg this year on the 13th and 16th September 2016 respectively.

IQ Business had conducted extensive research on the potential drivers for growth in the current South African economic environment, and as such identified Enterprise Development as being a critical component.  NPI’s CEO, Israel Noko, shared some valuable insights into a few considerations around ESD programs and overall economic growth as an outcome.   Facilitated by Bruce Whitfield, other key panel speakers and presenters included for DA Leader, Tony Leon and former DA Parliamentary Leader, Lindiwe Mazibuko, Economist Azar Jammine, Political commentator, Justice Malala and IQ Business CEO, Adam Craker.

Here are Israel Noko’s top five points for companies embarking upon an Enterprise Development program, were as follows:

  1. Small Businesses need to become innovative

Whether through technology or new process engineering, SME’s can attract attention by simply going against business as usual and avoiding a comfort zone.

  1. Growth Alignment

It matters not on which side of the ESD fence you sit; whether as a contributor of ESD funds or a beneficiary as an SME, there needs to be a synergy pertaining to the growth strategy of both organisations.

  1. Locality

Companies need to be inward looking when selecting a beneficiary. The search has to begin within your own supply chain. There’s no need to constantly reinvent the wheel around ESD.

  1. Capital vs Capacity

While capital may be an essential component in the growth of the organisation, there should be a symbiotic balance with capacity building. Key to failure, even in a capital intensive environment, is the lack of capacity to meet strategic objectives.

  1. DO NOT fall in love with the first ESD beneficiary that comes your way

The last thing you need is a marriage of convenience that may very well pose serious setbacks for your ESD program due to lack of a concerted process of due diligence around alignment to your business strategy and suitability to your value chain.


Israel has been involved in various BEE mergers and acquisitions (the largest deal being valued at US$2,9 billion), and has also advised on BEE joint venture structures, company formations and re-organisations. Having worked with a number of multinational clients, Israel has advised on the implementation of Equity Equivalents, BEE compliance and has strong relations with the Department of Trade & Industry, the BEE Commission, the verification industry and various transformation stakeholders. Israel serves on the Boards of a variety of organisations including the BankSETA, MicroFinance South Africa, and Inyathelo: The South African Institute for Advancement.